Professional Documents
Culture Documents
Internship Report
There is an English proverb Two heads are better than one which means no one can obtain a
noble objective alone. This internship report is an accumulation of many peoples endeavor.
At the very beginning, I would like to convey my sincere appreciation to the almighty ALLAH
for giving me the strength and the ability to finish the task within the planned time. Then, I
would like to express my sincere gratitude to everyone who contributed towards preparing and
making this report successfully.
I would like to express my sincere and immense gratitude to my internship advisor, Ms. Sayla
Sawat Siddiqui, Lecturer-III of BRAC Business School, BRAC University. I am deeply
grateful to her whole hearted supervision during the internship period. Her valuable suggestions
and guideline helped me a lot to prepare the report in a well-organized manner.
I would also like to thank the authority of Beximco Pharmaceuticals Limited (BPL) for giving
me the opportunity to do my internship in their well-known organization and supplying me the
necessary information and published papers. I would like to thank Mr. Kamal Uddin Ahmed,
Manager, Accounts & Finance, Beximco Pharmaceuticals Limited, for his help and guidance
during my internship in BPL.
I am also grateful to the other officials and my intern friends at BPL who helped me while
preparing the report by giving their suggestions, assistance and supply of information, which
were valuable to me.
Title
Page No.
01
1.2
01
1.3
01
1.4
02
1.5
02
03
2.2
Industry Outlook
05
08
3.2
Mission
09
3.3
Vision
09
3.4
Core Values
09
3.5
Key Milestones
11
3.6
12
3.7
Organizational Structure
13
3.8
Products
14
3.9
Accolades
16
3.10
Global Recognitions
16
3.11
R & D Capabilities
16
3.12
Global Footprint
17
3.13
Exports
17
3.14
Corporate Strategies
18
3.15
22
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4.2
26
4.3
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4.4
30
4.5
Personal Observation
33
4.6
Recommendation
34
35
5.2
36
5.3
36
5.4
37
5.A
38
38
39
39
5.B
40
Industry Analysis
5.B.1 Introduction
40
40
5.C
60
Equity Analysis
5.C.1 Introduction
60
60
Overview
78
6.2
78
6.3
79
80
References
81
Appendix
86
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This internship report is based on my internship experience, academic knowledge and mostly
based on the secondary data. In my internship tenure, I have worked on the Accounts &
Finance department of Beximco Pharmaceuticals Limited (BPL). It was a great opportunity to
experience and gather knowledge about different aspects of an organization, specially the tasks
related to accounts and finance. Based on the suggestion of my academic supervisor, I have
chosen the topic Financial Analysis on Beximco Pharmaceuticals Limited. In the beginning,
this report discusses about the pharmaceuticals industry of Bangladesh and its current
situation. Than the report briefly discusses about Beximco Pharmaceuticals Limited as a
whole. After the overview, this report discusses about the Accounts & Finance department of
BPL in a nutshell and later on deliberates about my internship experience and job
responsibilities during the internship period and the strengths and weaknesses of the
department that I have observed during my stay at BPL. The report also mentions some
suggestions which will help the department and the organization as a whole to perform better
than before. In the financial analysis part, the report discusses about the current investment
situation of BPL where, the report mentions the positive and threatening aspects of investing
in BPL shares. Furthermore, I have conducted an industry analysis where I have deliberated
the financial ratios of BPL and compared it with its two (02) of the strongest competitors,
Square Pharmaceuticals Limited and Renata Limited. I have also came up with some reasons
behind the fluctuations of BPLs ratios. Later on the financial analysis part, I have made an
equity analysis where I have mentioned the calculating procedure of Operating Cash Flow
(OCF), Project Cash Flow and Net Present Value (NPV). After that, I have calculated the
intrinsic and market price of the shares of BPL for the sake of comparison and later on came
up with the reasons behind the overvaluation of shares of BPL. Before concluding the report,
I have conducted a TOWS analysis through which I have recommended some overall actions
to BPL based on its current strengths, weaknesses, industry opportunities and industry threats.
Chapter: 01
Introduction
The report was originated to make an analysis on the financial conditions of Beximco
Pharmaceuticals Limited (Beximco Pharma) for the fulfillment of the internship program
required for the completion of the degree Bachelor of Business Administration (BBA) under
BRAC Business School (BBS), BRAC University. The report was prepared under the academic
supervision of Ms. Sayla Sawat Siddiqui, Lecturer-III, BRAC Business School (BBS), BRAC
University and under the organizational supervision of Mr. Kamal Uddin Ahmed, Manager,
Accounts & Finance, Beximco Pharmaceuticals Limited.
General Objective:
This report is prepared to fulfill the degree Bachelor of Business Administration (BBA)
under BRAC Business School (BBS), BRAC University.
Specific Objective:
To gain an idea on the pharmaceuticals industry of Bangladesh.
To give a brief overview on Beximco Pharmaceuticals Limited.
To conduct an industry analysis on Beximco Pharmaceuticals Limited and compare its
values with two (02) of its fears competitors for the tenure 2009-2013.
To conduct an equity analysis on Beximco Pharmaceuticals Limited and to justify the
reasons behind the over or under valuation of its stock.
To give an overall recommendation to Beximco Pharmaceuticals Limited through a
TOWS analysis.
This report gives a brief idea on Beximco Pharmaceuticals Limited and its operation. The
information provided in this report is based on personal observation, research and job
experience acquired during the internship tenure. This report mainly focuses on the financial
performance of Beximco Pharmaceuticals Limited and the analysis is made through reviewing
the financial statements of the company and literatures. It also gives an idea of the overall
pharmaceuticals industry of Bangladesh.
In order to prepare this report, only secondary data has been used. The sources that has been
used to collect necessary data is given below:
Annual reports of Beximco Pharmaceuticals Limited, Square Pharmaceuticals Limited and
Renata Limited for the tenure 2009-2013.
Websites of Beximco Pharmaceuticals Limited, Square Pharmaceuticals Limited and
Renata Limited.
Website of Dhaka Stock Exchange (DSE).
Different journals and articles on pharmaceuticals industry of Bangladesh and Beximco
Pharmaceuticals Limited.
Other internship reports on Beximco Pharmaceuticals Limited.
Online newspapers such as The Daily Star and The Financial Express.
Different websites.
All the comments made, conclusions reached and suggestions for possible improvement
provided are purely based on my level of understanding, knowledge and my way of
interpreting a particular statement.
Beximco Pharmaceutical Limited follows a policy of not disclosing all the information
needed to prepare my report for obvious reason.
Because of the lack of information, I have to make some assumptions that may cause few
errors or personal mistakes in the report.
Chapter: 02
Industry overview
The pharmaceuticals industry in Bangladesh has progressed well over the last three (03)
decades and the country is nearly self-sufficient in pharmaceuticals with 98% of its demand
being met by domestic manufacturers.
At present, this is one of the most technologically advanced sectors in the country employing
probably the highest number of white collar professionals. Since the declaration of Drug Policy
in 1982, the sector has grown from TK 173 crore to more than TK 12,000 crore (or $1.5 billion)
today. The credit goes to the private sector for its significant investment in building capabilities
(both infrastructure and people) to bring this industry to compete in the global market place.
Bangladeshi medicines are also being exported to many countries in the world and leading
players are making expeditions into the most regulated market of Europe, US and Australia
which are known for strict regulation and highest quality standards. In view of the export
potential, pharma has been declared as the thrust sector in Bangladesh with an aim to diversify
the countrys export portfolio and lower its dependency on RMG (ready-made garments).
Pharma has received a lot of attention in recent times for its huge potential to become a major
export oriented sector. However, we need to keep in mind that unlike RMG, pharma is
fundamentally known for its largely knowledge-driven and technologically intensive industry
and this requires significant investment in R&D compared to other industries. A pharma
companys success mostly depends on its intellectual capital where special skill-set is required
to deal with every stage if its operations.
Fortunately for Bangladesh, Drug Policy of 1982 created an opportunity for the local industry
to flourish and make it self-reliant whereby local companies increased their share of production
from 30% in 1970 to almost 90% today, which translates to a tremendous amount of foreign
currency savings for the country every year. Bangladesh is the only country among all LDC
countries which has a well-developed pharma industry that, over the time, could successfully
make the transition from being an import dependent to an exporting one. Although medicine
export from Bangladesh constitutes only a small percentage of total production, the sector has
over the few years, attracted overseas buyers and it has earned good reputation as a quality
drug manufacturer.
Leading pharma companies have already secured endorsements from major drug regulatory
agencies like UKMHRA, TGA, ANVISA, Health Canada etc. while two (02) of them, Beximco
Market Size:
Pharmaceuticals industry of Bangladesh is currently valued at BDT 120 billion and can
meet 98% of total domestic demand. During the last few years, leading drug manufacturers
have increased production capacity by 200% to 300%.
106
120
84
100
80
60
120
54
47
68
40
20
0
2008
2009
2010
2011
2012
2013
DRUG INT.
4% 6%
27%
ACME
ACI
6%
7%
ARISTO PHARMA
7%
14%
ESKAYEF
8%
12%
RENATA
9%
OPSONIN
BEXIMCO
INCEPTA
SQUARE
5000
4000
8%
16%
9%
30%
20%
3000
2000
1000
10%
3272
3544
3856
4784
5533
0%
2009-10
2010-11
2011-12
2012-13
2013-14
Growth
API:
The industry imports around 70% of its raw materials from foreign sources. Two high
priority projects (establishing Active Pharmaceuticals Ingredient Park and National Control
Laboratory) are taken by the government for facilitating the pharmaceuticals sector.
Bangladesh currently needs to import API. Though the government has taken initiative for
setting up an API park a decade ago, the project is not yet completed. If the API Park
becomes operational, production cost will be cheaper which will give Bangladesh a
competitive edge in the international market. If Bangladesh can arrange Bio-equivalence
test for pharmaceutical products under local arrangement then the companies do not need
to go abroad for the tests and this will further drive the production cost as the tests are
conducted by paying high fees.
Government Policy:
The pharmaceuticals sector has been among the high-priority ones in Bangladesh export
policy since 2006. As per the budget of 2014-15, customs duty on 40 basic raw materials
used in medicine manufacturing are reduced to 5% from previous 10%-25% rate. Customs
duty on 14 items used in anti-cancer medicines have been withdrawn.
TRIPS Challenge:
The major challenge for the expansion of pharmaceuticals industry in Bangladesh is the
expected expiry of WTO or TRIPS (Trade Related Intellectual Property Rights) agreement
in 2016, which provides patent exemption for pharmaceutical products in Bangladesh as a
Least Developed Country (LDC).
Chapter: 03
Company overview
Beximco Pharma has a strong market focus and is anticipating continued future growth by
leveraging business capabilities and developing superior product brands and markets. In
particular, the company is very interested in developing a strong export market in USA and
Europe. To meet the future demand it has invested over US 50 million dollar to build a new
state-of-the-art manufacturing plant, confirming to USFDA and UKMHRA standards. This
new plant will also offer contract-manufacturing facility to leading pharmaceutical companies,
especially from Europe and US.
Beximco Pharma will be one of the most trusted, admired and successful pharmaceutical
companies in the region with a focus on strengthening research and development capabilities,
creating partnerships and building presence across the globe.
Commitment to Quality
Customer Satisfaction
People Focus
Accountability
Corporate Social Responsibility
Figure 4: Core Values of Beximco Pharmaceuticals Limited
Commitment to Quality:
Beximco Pharma adopts industry best practices in all of its operations to ensure highest
quality standards of its products.
Customer Satisfaction:
It is committed to satisfy the needs of its customers, both internal and external.
People Focus:
It gives high priority on building capabilities of its employees and empower them to
realize their full potential.
Accountability:
It encourage transparency in everything they do and strictly adhere to the highest ethical
standards. It is accountable for its own actions and responsible for sustaining corporate
reputation.
10
Year
Milestones
2013
2012
2011
pharmaceutical company to win National Export Trophy (Gold) for the fourth
time
2010
2009
Goods Administration (TGA), Australia, and Gulf Central Committee for Drug
Registration, for GCC states; Technology transfer arrangement to manufacture
Roches ARV drug Saquinavir
2006
Launched CFC free HFA inhalers for the first time in Bangladesh
2005
2003
1993
1992
1985
1983
1980
Started manufacturing products of Bayer AG, Germany and Upjohn Inc., USA,
1976
Company incorporated
11
Management Committee
Name
Designation
1. Nazmul Hassan MP
Managing Director
3. Rabbur Reza
4. Ali Nawaz
Director, Commercial
7. Lutfur Rahman
Director, Manufacturing
8. A R M Zahidur Rahman
9. Shamim Momtaz
Executive Committee
Name
Designation
2. Nazmul Hassan MP
Managing Director
3. Rabbur Reza
4. Ali Nawaz
Director, Commercial
12
13
Blockbuster Products:
Product Name
Description
1. Napa
2. Neoceptin-R
in terms of unit.
in terms of value.
Emerged as the most admired and highest selling nutritional
Highest
selling cardiovascular
drug
in
Bangladesh
5. Tofen
6. Azmasol
Suppository
Nasal spray
2. Azmasol Inhaler
4. Bexitrol Inhaler
5. Ultrafen 50 Suppository
6. Decomit 50 Inhaler
7. Ipramid Inhaler
14
Therapeutic class
1. Napa
Paracetamol
2. Amdocal
3. Tycil
Antibacterial
4. Arixon
Antibacterial
5. Intracef
Antibacterial
6. Neoflox
Antibacterial
7. Atrizin
Antibacterial
8. Pedemin
Antibacterial
9. Filmet
Antiprotozol
10. Neoceptin-R
Antiulcerant
11. Bronkolas
Bronchodilator
12. Neosten
Skin
13. Aristovit-M
Vitamin
11. Lopidam
2. Arlin
12. Metazine MR
3. Calorate
13. Metoprol XL
4. Calorate Kit
14. Navsol
5. Citicol
15. Nervalin
6. Diapro
16. Odeson
7. Feburic
17. Omastin IV
8. Hemofix
18. Tranexil
9. Hemofix FZ
19. Tyclav
20. Voligel
15
R&D is key to success for any pharma company and Beximco Pharma has given top priority
in building and strengthening its capabilities to excel in formulating technologically complex
products. Its formulation R&D team develops a wide range of generic products including
difficult to copy formulations in defined specialty areas. Beximco Pharma has successfully
developed multi-layer tablet, sustained release formulation, dispersible tablet, CFC-free
inhalers, prefilled syringes, lyophilized injectable, sterile ophthalmic, oral thin films etc. The
team has provided a robust product flow with 23 products in the year, and six (6) of them were
launched for the first time in the country. Currently Beximco Pharma has a number of products
in the pipeline for submission in the regulated markets. Its research and development activities
are closely focused on market needs and driven by technological progress. A new, state-of-the-
16
art research lab is being set up to facilitate the development of innovative and difficult products
with a focus to create unique market opportunities.
As Beximco Pharma is expanding its global footprint, its position in many Asian and African
countries is now stronger than ever while its focus remains high on the regulated markets of
USA and EU for value added generics. Its export business registered an excellent growth of
43% over the previous year. Beximco Pharma has successfully filed three (03) ANDAs
(Abbreviated New Drug Application) with the US FDA (Food and Drug Administration) and
also made submission for Marketing Authorization in several EU countries. During the year it
registered 38 products in 14 countries, and became the first Bangladeshi company to enter the
European market with ophthalmic products. The company has a clear strategy to capitalize on
generic drug opportunities and it continues to expand its pipeline for submission in overseas
markets. At the moment, Beximco Pharma has the highest number of international
accreditations among local companies.
Beximco Pharma is the largest pharmaceutical exporter of Bangladesh. It was the first
pharmaceutical company in Bangladesh to receive National Export Trophy (Gold) in 19941995, which was the very first year for introduction of such award by the Government of
Bangladesh. Beximco Pharma has also been awarded National Export Trophy (Gold) for two
(02) consecutive years 1998-1999 and 1999-2000. It is the only company which is the record
four (04) times winner of such award for its outstanding export performance. It is worth
mentioning that this award is the highest national recognition for excellence in export.
Beximco Pharma had always been highly proactive in exporting pharmaceuticals from
Bangladesh and was the pioneer in almost all export activities of the country such as,
Pioneer in Entering the CIS Countries.
First Pharmaceutical Company of Bangladesh to Enter Singapore, One of the Most
Stringent and Regulated Markets in Asia.
First and Only Bangladeshi Company to Supply Pharmaceuticals to Raffles Hospital, One
of the Most Prestigious Hospitals of the Region.
Only Company to Supply Specialized and High-Tech Products like Inhalers, Suppositories
and Nasal Sprays to Overseas Markets.
17
Beximco Pharma has made a huge contribution in fulfilling a national aspiration of turning an
import based country into an exporter of quality medicines, by marking its presence in 45
countries across the globe.
Financial Strength
Strong Relationships
18
19
20
definitely a strong favorable key success factor for Beximco Pharma on its own and also
relative to its rivals.
Relationship with The Doctors:
When it comes to physician relationship management, Beximco Pharma is performing
better than most but is still not performing well enough to take the number one (01) position
in this respect. Square Pharmaceuticals Limited, Beximco Pharmas biggest competitor has
taken the lead in this respect.
Financial Strength:
Beximco Pharma has considerable financial strength in comparison to most but Incepta
Pharmaceuticals Limited is not far behind while Square Pharmaceuticals Limited has
substantial financial strength as well. Relative financial strength is something that Beximco
Pharma should always try to monitor after all this the criteria on which corporations choose
financial decisions regarding its debt/equity mix (capital structure of a firm), maturity
structure (maturity of assets and liability), method of financing investment projects (project
appraisal or capital budgeting) and other decisions with a goal of maximizing the value of
the firm (the value of the shareholders wealth).
Strong Relationships:
Through Beximco Pharmas eyes, at the core of every successful partnership is a
professional relationship based on mutual trust and respect. Beximco Pharma recognizes
and understands that its alliances and partnerships are a core component to accomplishing
its strategic global aspirations. Beximco Pharma believes that the right alliances can
contribute appreciably to the achievements of its partners as well as to its own vision and
sustainable growth. Beximco Pharma has a successful track record of partnerships and
alliances with global MNCs such as GSK, Aventis, Bayer AG, Upjohn Inc. and Ciba. The
company has successfully established its brand value within the medical community. The
company seeks to further reinforce its relationships with all major stakeholders in the
healthcare value chain. Beximco Pharma differentiates itself by providing value added,
academic services to the medical community in the form of seminars and conferences,
clinical meetings, scientific publications and so on. It is engaged in constant
communication with doctors to ensure prompt feedback and meet any requests for
academic services.
21
Corporate Social Responsibility (CSR) is an integral part of Beximco Pharmas business. CSR
has been incorporated as one of the core values of the organization and the company actively
takes part in initiatives that benefit the society and contribute to the welfare of the people. Its
commitment to build a healthier tomorrow is largely based on CSR activities and Beximco
Pharma always strive to integrate those to business strategies. The company works together
with non-profit organizations, international development agencies, and various healthcare
institutes to improve peoples lives through research, information, and advocacy. As Beximco
Pharma writes its success story as an emerging generic drug company in the region, it realizes
that responsibility towards all its stakeholders increases in tandem. Some of its CSR activities
in recent years are outlined and described below:
Mobile Alliance for Maternal Action (MAMA)
22
(A2I) Program at the Prime Ministers Office are official partners of the initiative while
Global partners include Johnson & Johnson and United Nations Foundation, among others.
Extending Support to Jaago Foundation:
Jaago Foundation, the largest youth based volunteer organization in Bangladesh with more
than 10,000 volunteers, aims to bring about substantial improvement in the lives of
disadvantaged people with special emphasis on their literacy and nutrition. Jaago runs a
number of schools to provide free education to the children in slum areas, besides running
awareness campaigns on youth leadership, and other important social, environmental and
health issues. Beximco Pharma provides both financial and in-kind supports to Jaagos
various health and education initiatives.
Support to Rana Plaza Victims:
CRP (Centre for the Rehabilitation of the Paralyzed) Bangladesh has been actively
providing full support for the victims of Rana Plaza disaster from the very beginning. More
than 1,000 people have died and more than 600 injured in this tragedy. Beximco Pharma
extended its support for the treatment of Rana Plaza victims and handed over a cheque of
TK 3.7 lac and donated large quantities of medicine to Valerie Taylor, Founder, CRP, Savar
at BPLs Head Office.
Free Medicines for UN Health Camps:
Beximco Pharma helps the UN mission in different countries through providing free
medicines for running health camps. In 2013, Beximco Pharma provided all the medicines
free of cost for the health camp organized by the UN peace keeping mission in the Congo.
Sponsoring Friendly Cricket Match to Promote Maternal and Newborn Health:
Mushfiqur Rahim, a renowned player of Bangladeshs national cricket team and also a
Brand Ambassador of USAID-supported Maternal and Newborn Health program (Ma
Moni) in Bangladesh, played a cricket match on April 4, 2013 with local cricketers in
Sylhet to raise fund and increase awareness about maternal health. Beximco Pharma
sponsored the cricket match as a part of its corporate social responsibility. The raised funds
will be used by Save the Children for treating mothers in rural areas who have
experienced health problems.
23
24
Chapter: 04
Job description & Responsibilities
The activities of the Accounts & Finance department of Beximco Pharma is carried over by
experienced and adequate person in each designation. The functions of this department are
divided into five (05) sections to maintain proper control. The sections are as follows:
Tax &
Payroll
Financial
Accounts
(Non-SBU)
Treasury
Accounts & Finance
Department
Finance
Accounts
(SBU)
IOC & BP
25
26
27
28
Ali Nawaz
Chief Financial Officer (CFO)
Treasury
Financial
IOC & BP
Financial Accounts
(Non-SBU)
Accounts (SBU)
Manager, Treasury
Manager, A & F
29
Internship Experience:
I worked in the Accounts & Finance department as an intern for two (02) months in
Beximco Pharma. During my internship at BPL, I was not only got the work experience
which I expected but also the opportunity to take a close look at BPL's business as well as
its culture and values, which helped me to further understand how an established company
works. During this period of internship, I have experienced different aspects of the accounts
work, including the internal control, industrial costing, daily receives and payments system,
payroll accounts, LC monitoring, bill of entry, MRR, PTG file maintenance, budgeted
product price entry, payment clearance etc. Every day, I had different things to learn and
work on. My Supervisor and mentors reviewed my work during the internship. My
supervisor gave suggestions and feedback on my work almost every day, helping me to do
the work better. I also communicated with my fellow interns to listen to their suggestions
and comments on my work. In this process of learning, I gradually enriched my knowledge
in accounting and finance and improved my communication skills. In short, my internship
experience at BPL was fascinating, interesting and valuable.
30
Job Responsibilities:
As I have discussed already, the Accounts & Finance department of Beximco Pharma has
several sections. As an intern, I was exposed to several sections under several employees
but there are some certain sections where I was working most of the time for two (02)
months of my internship. Those sections are listed below:
Treasury
Financial
Accounts
(Non-SBU)
Sections
Financial
Accounts
(SBU)
IOC & BP
31
32
During the internship tenure in Beximco Pharma, I have observed certain aspects which I have
divided it into two (02) parts, which is outlined below and explained afterwards:
Positive
Aspects
Negative
Aspects
Personal Observation
Negative Aspects:
Even though the Accounts & Finance department of Beximco Pharma is full of
experienced people, they lack ambition and youth among them. As a result, the
department and the organization as a whole is not performing up to their benchmarks.
As most of the employees in Beximco Pharma is working for a longer period of time,
they developed a certain disregard about companys rules such as maintaining office
time, maintaining deadlines etc.
33
In the Accounts & Finance department, there are at least two (02) people working for
each post which could have been done by one (01) person pretty easily. As a result,
unnecessary chaos in the department and most importantly the cost of the company is
increasing.
The employees of Accounts & Finance department is not technologically sound
enough. As a result, the tasks which could have been done and stored in computers
pretty easily has been done manually in papers, which is increasing the stationary and
storage costs of the company at a big margin.
Beximco Pharma should impose certain effective rules to enforce punctuality. Through a
notice or an e-mail, the company should inform the employees about the consequences of
not maintaining the office time appropriately. Moreover, there should also be a provision
of reward for the employees for being punctual.
The Accounts & Finance department and Beximco Pharma as a whole, needs a portion of
young employees who will work with energy, ambition and aggressiveness. The
aggressiveness of the youth generation might help them to perform even better in the
domestic market.
Beximco Pharma needs to provide training to its existing employees about different
technologies and softwares which will help them to work more efficiently and to reduce
companys costs.
34
Chapter: 05
Financial Analysis
The financial analysis part of this report is divided into three (03) parts which are outlined and
discussed below:
Current
Investment
Situation
Industry
Analysis
Equity
Analysis
Financial Analysis
35
In order to prepare this financial analysis part, only secondary data has been used. The sources
that has been used to collect necessary data is given below:
Annual reports of Beximco Pharmaceuticals Limited, Square Pharmaceuticals Limited and
Renata Limited for the tenure 2009-2013.
Websites of Beximco Pharmaceuticals Limited, Square Pharmaceuticals Limited and
Renata Limited.
Website of Dhaka Stock Exchange (DSE).
Different journals and articles on Beximco Pharmaceuticals Limited.
Other internship reports on Beximco Pharmaceuticals Limited.
Online newspapers such as The Daily Star and The Financial Express.
Different websites.
36
All the comments made, conclusions reached and suggestions for possible improvement
provided are purely based on my level of understanding, knowledge and my way of
interpreting a particular statement.
Because of the lack of information, I have to make some assumptions that may cause few
errors or personal mistakes in the report.
37
Beximco Pharma holds third highest market share in local sales (approximately 7.78%).
The companys growth rate in domestic sales is one of the highest in the industry and
beating the industry growth rate by some margin for last four (04) years.
In the first quarter of 2014, the company has launched 13 new products, registered 12
products in different overseas market including Costa Rica and Columbia. In 2013, it
launched 23 products in Bangladesh six (06) of which are introduced for the first time in
Bangladesh and penetrated the European market by start selling to Germany and Austria.
Received GMP (Good Manufacturing Practice) approval from Taiwan Food and Drug
Authority (Taiwan) and Health Canada (Canada) and is likely to get approval from USA as
well.
Beximco Pharma has 10MW electricity generation capacity installed and has the highest
number of international GMP accreditations in the country in pharmaceuticals sector.
In 2013, the company has spent around BDT 2,739 million and up to the third quarter of
2014, it spent around BDT 1,553 million for acquisition of property, plant and equipment,
which is an indication that the company might be going for capacity expansion. This may
accelerate the companys sales growth both in foreign markets as well as in the domestic
market.
Beximco Pharmas export sales in 2013 has risen by almost 43% and its export sales in the
last three (03) years is increasing at a higher rate.
Beximco Pharma has its own penicillin API unit situated in Kaliakoir and is one of the few
companies of Bangladesh which have its own API.
38
The company lost some of its market share to Incepta Pharmaceuticals Limited.
Around 46% of Beximco Pharmas cost of goods sold is imported which makes the
company vulnerable to currency fluctuation risk and the company indeed incurred BDT
17.2 million loss due to currency fluctuation.
The company has contingent liability of BDT 267.9 million which may affect the
companys profitability if the company becomes bound to pay the sum mentioned above.
The companys spending in R & D is very insignificant. This is a serious issue as after the
TRIPS become void the company has to pay royalty for selling the generic drugs which are
already patented thus increasing the cost of the company.
The companys Economic Value Added is negative over the last 3 years period (20112013) implying the company failed to cover its cost of capital.
The company has been utilizing almost 80% of its total capacity for the last 4 years. If the
company does not go for increasing their production capacity their total revenue will not
go up by a large margin.
Basic Information
Current Market Price (BDT)
48.60
18,245.442
16.82%
2,619,245
34.81%
367.85
61.93%
37.1-75
15.29
15.94
4.01
94.26
AA-
ST-2
39
Liquidity Ratios:
Liquidity ratio refers to the ability of a company to interact its assets that is most readily
converted into cash. Assets are converted into cash in a short period of time that are
concerns to liquidity position. However, the ratio made in the relationship between cash
and current liability.
Analysis & Comparison:
Current Ratio:
It is a liquidity ratio that measures an organizations ability to pay short-term debts. The
ratio is mainly used to give an idea of the organizations ability to pay back its shortterm liabilities (debt and payables) with its short-term assets (cash, inventory,
receivables). The higher the current ratio, the more capable the company is of paying
its obligations. A ratio under 1 suggests that the company would be unable to pay off
its obligations if they came due at that point. Higher current ratio definitely indicates
that the firm is highly liquid and able enough to meet the demands of the creditors.
Satisfactory current ratio actually varies from industry to industry but in general, if the
current ratio lies above 1, it indicates that the business is healthy. If the current ratio
40
is below 1, then it means that the current liabilities are higher than the current asset,
so the firm can face many difficulties while paying back their short term debts. On the
other hand, if the current ratio is too high then it indicates that the firm has problem in
working capital management. Low current ratio does not always mean that the firm is
at an alarming stage or very near to be bankrupt but of course it is better to maintain a
standard current ratio in order to be free from liquidity risk.
Formula:
Ratio Trend:
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2009
2010
2011
2012
2013
Beximco
2.98
2.46
2.70
2.67
2.03
Square
2.05
1.50
1.91
2.12
3.13
Renata
1.17
1.11
0.73
1.10
0.79
41
Comparison:
The trend shows that, Beximco Pharma had their highest current ratio in 2009, Square
Pharmaceuticals Limited at 2013 and Renata Limited at 2009. For Beximco Pharma,
though the ratio gradually declined afterwards, it was not below 1. So, it can be said
that they always maintain a good current ratio to pay off their debts in time. In recent
past years, Square Pharmaceuticals Limited has been maintaining a stable current ratio
which is very much required to maintain a healthy financial position. Moreover, they
are also maintaining the current ratio more than 1, which is risk free and they are also
operating successfully without maintain any idle capacity. In case of Renata Limited,
they are maintaining a ratio around 1 but stumbled a bit in 2011 and 2013, as their
ratio went down below 1. It signifies that Renata is facing trouble in recent times to
pay off their current liabilities.
Overall, we can comment that Beximco Pharma is in more stable position in
comparison to other two (02) companies and the companies are quite aware about their
liabilities and maintain their assets in ways to pay off their obligations in time.
Acid-Test (Quick) Ratio:
This ratio assesses the capacity of an organization to recover its current liabilities by
using the organizations quick assets. Assets which can be easily converted into cash
are known as quick assets. Quick ratio is also known as acid-test ratio and it excludes
the inventories as inventories are less liquid. Quick ratio less than 1 indicates that the
firm is currently unable to pay its current debts. A high quick ratio is not considered as
good always depending on the accounts receivables and current liabilities. If it happens
that the firm has huge account receivables which will be collected after a long time and
the current liabilities are lesser but needs to be paid instantly then the quick ratio will
be higher. However, the firm will be in a risky situation as there is liquidity crisis. On
the other hand, opposite thing can also happen.
Formula:
()
=
+ + ()
42
Ratio Trend:
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2009
2010
2011
2012
2013
Beximco
1.83
1.25
1.39
1.44
1.11
Square
0.90
0.85
0.76
0.89
1.71
Renata
0.35
0.35
0.23
0.39
0.26
43
Inventory Turnover:
Sufficient amount of inventory is must to do successful business. This ratio basically
shows that over a period, how many times the inventories are sold and renovated.
Generally, a company with high inventory turnover ratio is assumed as strong one.
When the inventory level is very high, the ratio will be low which means poor sales and
the inventories are kept idle in the warehouse. Definitely, it is bad for future growth of
the company. The turnover ratio for perishable good is normally very high as these are
sold out quickly. Although high inventory turnover ratio is desirable, sometimes it may
indicate ineffective buying.
Formula:
Ratio Trend:
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2009
2010
2011
2012
2013
Beximco
1.59
1.79
1.92
2.07
2.33
Square
3.05
3.24
3.21
3.61
4.45
Renata
1.79
2.02
2.15
2.03
1.86
44
Comparison:
The trend shows that, Beximco Pharma has a highest ratio in 2013 but possess the
lowest turnover ratios most of the years compared to its competitors. On the other hand,
Square Pharmaceuticals Limited in maintaining a very impressive ratio that reached to
its peak position in 2013. In case of Renata Limited, they also have failed to maintain
a good ratio because of their excessive inventory keeping and in 2011 the ratio reached
to its company highest.
Overall, Beximco Pharma is maintaining a stable inventory turnover but their financial
statements signifies that they have a huge unused inventories which increased the cost
and reduced their profit. So, they need to be careful in maintaining sufficient inventories
(but not excessive) to meet up the needs.
Overall Review on Liquidity Ratios:
Beximco Pharma is maintaining more or less a strong position in all the liquidity ratios that I
have discussed. They are really in a strong position in current ratio and acid-test (quick) ratio
but a bit moderate in terms of inventory turnover. They may be facing certain problems because
of inflation, which is increasing the price of raw materials and eventually their accounts
payables and also because of the increase in government regulations, which is increasing their
tax payables. Because of that, they may be facing problems in maintaining a healthy liquidity
ratios in recent years.
45
Profitability Ratios:
Profitability ratios designate an organization's overall efficiency and performance. It
measures how to use of organizations assets and control of its expenses to generate an
acceptable rate of return.
Net Profit Margin:
A ratio of profitability calculated as net income divided by revenues, or net profit
divided by sales. It measures how much out of every dollar of sales a company actually
earns. This is also known as profit margin. Higher the profit margin, better the condition
of the firm. Higher profit margin means that higher portion is remaining as profit after
the selling activity takes place. So it also indicates towards efficient expense controlling
ability. Increased earnings are good, but an increase in sales does not mean that the
profit margin of a company is improving. For instance, if a company has costs that have
increased at a greater rate than sales, it leads to a lower profit margin. This is an
indication that costs need to be under better control.
Formula:
=
()
Ratio Trend:
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2009
2010
2011
2012
2013
Beximco
13.00%
16.00%
15.00%
14.00%
13.00%
Square
16.00%
17.00%
16.00%
18.00%
19.00%
Renata
15.00%
17.00%
17.00%
16.00%
16.00%
46
Analysis:
Beximco Pharma has maintained a pretty good net profit margin in the last five (05)
years but it is declining gradually. The ratio reached to its highest in the year 2010 but
reducing afterwards due to increase in cost.
Comparison:
The trend shows that, Beximco Pharma is having a gradual decline in their net profit
margin in recent years (2011-2013). Though the rate was seen to be improving in 2010,
it again declined afterwards. Square Pharmaceuticals Limited is seen to be in the most
satisfactory situation compared to its competitors. It has been maintain the most stable
performance and the rate is also higher in every years. In case of Renata Limited, we
can see that the rate reached to its highest in 2010 and remained highest 2011 but
declined afterwards. Still their ratio is better than Beximco Pharma and closer to Square
Pharmaceuticals Limited on average.
Overall, Beximco Pharma is maintaining a steady ratio but it is not in an improving
trend compared to its competitor Square Pharmaceuticals Limited. From all these three
(03) companies comparison, it is quite clear that Beximco Pharma needs to pay more
attention in increasing their sales and reducing the costs in order to compete and run
their operations successfully.
Asset Turnover:
Asset Turnover measures how much sales revenue is gathered in against each dollar of
assets. It indicates the efficiency of asset management of a firm. Higher the ratio, higher
the efficiency of the firm. If a company can generate more sales with fewer assets it has
a higher turnover ratio which tells it is a good company because it is using its assets
efficiently. A lower turnover ratio tells that the company is not using its assets
optimally.
Formula:
47
Ratio Trend:
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2009
2010
2011
2012
2013
Beximco
0.28
0.31
0.36
0.39
0.40
Square
0.94
0.90
0.85
0.90
0.92
Renata
1.11
1.13
1.02
0.88
0.78
48
Ratio Trend:
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2009
2010
2011
2012
2013
Beximco
4.00%
5.00%
5.00%
6.00%
5.00%
Square
15.00%
15.00%
14.00%
16.00%
17.00%
Renata
17.00%
19.00%
17.00%
14.00%
12.00%
49
Comparison:
Among the three (03) organizations, Beximco Pharma has the lowest return on assets.
They had some improvement in 2012 but declined in 2013. Although the fluctuation
margin is not that high but still a lot of improvement needs to be done. On the other
hand, Square Pharmaceuticals Limited and Renata Limiteds trend shows that its
performance is quite good and in a stable position. Both the companies are generating
more profits in comparison to their assets.
Overall, the graph interprets that, Beximco Pharmas rate is on a declining trend which
is a matter of much concern. It indicates that they are generating lowest amount of
return from their investments in assets. So, in order to compete with other competitors,
Beximco Pharma needs to be more effective in converting the money it has invested
into net income.
Return on Common Shareholders Equity:
Return on Equity or ROE is the ratio of net income to total shareholders equity. It
measures how much a firm earns from the shareholders equity. It also shows the firms
efficiency at generating profits from every dollar of equity capital. Increasing ROE
indicates improved performance. In accounting sense, ROE is the true bottom line of
performance measurement.
Formula:
()
=
50
Ratio Trend:
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
2009
2010
2011
2012
2013
Beximco
58.56
78.31
72.41
74.26
73.65
Square
0.20
0.21
0.18
0.20
0.21
Renata
0.31
0.33
0.31
0.27
0.24
51
Ratio Trend:
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
2009
2010
2011
2012
2013
3.50
4.18
3.93
3.77
4.01
Square
106.43
9.56
7.82
8.74
10.26
Renata
333.90
37.74
38.51
35.34
39.38
Beximco
52
but declined in a small number in 2011 and 2012. However, the ratio is in upward trend
in 2013, which is a positive sign for the company.
Comparison:
The trend shows, Renata Limited had the highest earning per share indicating their huge
earnings on less investment. Their net income was high compared to their number of
shares outstanding. In case of Square Pharmaceuticals Limited, EPS were really high
in 2009 as their net income and number of shares both increased at that time but
afterwards EPS felt down drastically due to issue of huge number of new shares by the
company. Beximco Pharma had the highest EPS in 2010 and the lowest in 2009. They
are consistently having very low EPS compared to Renata Limited and Square
Pharmaceuticals Limited.
Overall, even though by looking at the trend, the EPS of Beximco Pharma does not look
that impressive, still in my opinion, it is quite a decent rate and maybe a reliable one
for the investors too. I think it is quite a high ratio considering their investment in
comparison with their competitors.
Price-Earnings (P-E) Ratio:
A valuation ratio of a company's current share price compared to its per share earnings.
The P-E ratio actually represents the expectation of investors about the firm. Higher PE means that investors have high expectations about the firms future growth and thats
why they are interested to invest. P-E ratio also sometimes indicates how much the
investors are willing to pay for each dollar of earnings. So, in this case it is referred as
multiple. The average P-E ratio is 20-25 times. Comparing P-E ratio within firms of
same industry gives the idea of which firm is performing well.
Formula:
( ) =
53
()
Ratio Trend:
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
2009
2010
2011
2012
2013
Beximco
44.51
32.32
23.82
14.83
11.77
Square
33.65
342.26
30.35
20.43
26.02
Renata
3.61
34.29
31.29
20.93
18.33
Comparison:
Trend shows that, over the last five (05) years, the P-E ratio of Square Pharmaceuticals
Limited has been quite high which means that investors have great interest on its stock.
This is because Square Pharmaceuticals Limited is a well reputed organization and has
a unique brand image. The ratio was highest in 2010 and lowest but within the standard
in 2012. Renata Limited is seen to have the highest rate in 2010 and the trend shows
that the rate is decreasing which is not a very good sign for the companys stock. In
case of Beximco Pharma, they were maintaining a healthy ratio till 2011 but declined
really quickly in 2012 and 2013, which is really alarming for the company of their
standards.
Overall, even though the investors still prefer to invest in Beximco Pharma in
comparison to their other competitors, the ratio is declining rapidly in the recent past
54
and also way below the standard. If the ratio is not improved very soon than, it may put
a negative impact on investors towards the company.
Overall Review on Profitability Ratios:
The profitability ratios of Beximco Pharma is not that impressive like the liquidity ratios.
Except, return on common shareholders equity, they are struggling to maintain an impressive
figure in rest of the profitability ratios. May be extreme competition from the competitors like
Square Pharmaceuticals Limited is the reason behind their performance decline. Moreover, too
much focus on export is one more reason behind their downfall in this ratios as the local
competitors are taking most of their market shares because of their lack of performance in the
local market. As a result, they are losing customers in Bangladesh and large amount of profits.
55
Solvency Ratios:
A key metric used to measure an enterprises ability to meet its debt and other obligations.
The solvency ratio indicates whether a companys cash flow is sufficient to meet its shortterm and long-term liabilities. The lower a company's solvency ratio, the greater the
probability that it will default on its debt obligations.
Debt to Total Assets Ratio:
This ratio finds out how much of the total asset is funded through debt. A debt ratio
greater than 1 indicates that a company has more debt than assets and it is more
dependent to its creditors for necessary financing. Meanwhile, a debt ratio of less than
1 indicates that a company has more assets than debt. The higher this ratio, the more
leveraged the company and the greater its financial risk. Although higher debt is not a
problem if interest payments are made on time, but if it is not then definitely a great
risk for the firm.
Formula:
=
Ratio Trend:
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
2009
2010
2011
2012
2013
Beximco
0.17
0.17
0.15
0.12
0.14
Square
0.12
0.17
0.11
0.09
0.04
Renata
0.21
0.22
0.31
0.21
0.28
56
Analysis:
We can see from the trend that Beximco Pharma is maintaining an impressive debt to
assets ratio, which is pretty less than 1. The ratio was highest in 2009 and 2010, which
was reduced is the later years. It signifies that, the company has more assets than debt.
Comparison:
The trend shows that, Renata Limited had an increase in debt financing for the past few
years. In 2011, they had the highest rate 0.31 of debt financing. From Square
Pharmaceuticals Limiteds trend we can see that, in 2010 it had the highest rate and
now gradually they are focusing on decreasing their debt ratio which is a good sign in
a sense that they are now relying less on their creditors for financing. On the other hand,
Beximco Pharma had their highest rate in 2009 and 2010, but they tactfully handled
that situation to decrease their debt financing in past few years. However, there is still
room for Beximco Pharma to improve its ratio in comparison to Square
Pharmaceuticals Limited.
Overall, Beximco Pharma is maintaining a steady debt to total assets ratio which is on
the declining tread. It is a positive sign for the company but in order to compete with
Square Pharmaceuticals Limited, they need to reduce their ratio even more as Square
Pharmaceuticals Limited managed to reduce is ratio to 0.04 in 2013.
Debt to Equity Ratio:
The debt-to-equity ratio is a measure of the relationship between the capital invested
by creditors and the capital contributed by the shareholders. Lower value of debt-toequity ratio is favorable indicating less risk. Higher debt-to-equity ratio is unfavorable
because it means that the business relies more on external lenders thus it is at higher
risk, especially at higher interest rates. A debt-to-equity ratio of 1 means that half of
the assets of that business is financed by debt and half by shareholders' equity. A value
higher than 1 means more assets are financed by debt than those financed by money
of shareholders' and vice versa. An increasing trend in of debt-to-equity ratio is also
alarming because it means that the percentage of assets of a business which are financed
by the debts is increasing. Higher debt can lead to both higher gain and risk, so firms
should be very careful while taking financial leverage.
57
Formula:
=
Ratio Trend:
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
2009
2010
2011
2012
2013
Beximco
0.31
0.22
0.21
0.16
0.20
Square
0.15
0.24
0.14
0.11
0.05
Renata
0.40
0.42
0.65
0.43
0.60
58
59
Equity analysis is the study of equities or stocks for the purpose of investments. The purpose
is to study companies, analyze financials and look at quantitative and qualitative aspects,
helping investors of varying degrees to make an informed decision. In simpler terms, equity
analysis is the act of gathering the following information:
Information that helps investors to decide where to put their money.
Information that traders require to understand whether to enter or exit a market position.
Information that financiers (bankers and firms) need to evaluate companies.
Calculating
OCF
Calculating
Project Cash
Flow
Calculating
NPV
Calculating
Per Share
Price
Comparison
&
Justifications
60
For this analysis, I have collected the annual report of Beximco Pharma of the last five (05)
years, from which, I have taken the Balance Sheet and Statement of Comprehensive
Income of the organization. Based on the last five (05) years financial statements (2009-2013)
of the organization, I have forecasted their financial standings for its next five (05) years
probable financial standings (2014-2018).
To justify this analysis, it is important to disclose all the necessary terms and calculations of
each step for proper understanding. The brief discussion of the steps mentioned in the above
figure is given below:
EBIT
Operating
Cash Flow
Taxes
Depreciation
61
Terms
Value
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
(=) EBIT
xxx
Formula:
=
( ) ( )
( )
Where,
NSR = Net Sales Revenue
Phase 02: Than I have made an average of the growth of net sales revenue within the time
frame of 2010-2013.
Formula:
. =
62
Phase 03: Lastly, I have forecasted the net sales revenue for the years 2014-2018 by using
the formula below:
Formula:
= {0 1 + }
Where,
P0 = Net Sales Revenue (Previous Year)
g = AVG. of Net Sales Revenue Growth
Calculation of Other Forecasted Income & Expenses:
Phase 01: Firstly, I have calculated the percentage of the rest of the income and expenses
situated in the Statement of Comprehensive Income of Beximco Pharma of each year
within the time frame of 2009-2013.
Formula:
. =
. ( )
( )
Phase 02: Than I have made an average of the percentage of all the income and expenses
situated in the Statement of Comprehensive Income within the time frame of 2009-2013.
Formula:
. . =
Phase 03: Lastly, I have forecasted the all the income and expenses of the Statement of
Comprehensive Income for the years 2014-2018 by using the formula below:
Formula:
. = (0 . . )
Where,
P0 = Net Sales Revenue (Previous Year)
Calculation of EBIT:
By calculating the forecasted net sales revenue and other income and expenses, I have
calculated the EBIT by following the structure of Table 9.
63
Depreciation:
Phase 01: Firstly, I have collected the depreciation value the last five (05) years (20092013) from the annual report of Beximco Pharma. Then, with the help of the value of noncurrent assets of the balance sheet, I have calculated the percentage of depreciation by using
the formula below:
Formula:
( )
( )
Phase 02: Than, I made an average of the percentage of depreciation for the years 20092013 by using the following formula:
Formula:
. =
Phase 03: Lastly, I have forecasted the depreciation value for the time period of 20142018 by using the formula below:
Formula:
= (1 . )
Where,
P1 = Non-Current Assets (Current Year)
Taxes:
Phase 01: Firstly, I have collected the value of current tax from the Statement of
Comprehensive Income of Beximco Pharma for the years 2009-2013. Then, I have
calculated the percentage of current tax of each year by using the following formula:
Formula:
=
( )
64
Phase 02: Than, I made an average of the percentage of current tax for the years 2009-2013
by using the following formula:
Formula:
. =
Phase 03: Lastly, I have forecasted the current tax for the time period of 2014-2018 by
using the formula below:
Formula:
= (0 . )
Where,
P0 = Net Sales Revenue (Previous Year)
65
Forecasted Data
Items
2014
2015
2016
2017
2018
4,354,040,710
5,285,306,020
6,415,755,293
7,787,991,049
9,453,727,864
(+) Depreciation
462,400,324
501,343,027
543,565,430
589,343,745
638,977,445
(-) Taxes
243,725,636
295,854,967
359,133,996
435,947,479
529,190,238
4,572,715,398
5,490,794,080
6,600,186,727
7,941,387,315
9,563,515,071
EBIT
66
Operating
Cash Flow
Project
Cash Flow
Change in
Net Working
Capital
Capital
Spending
67
1 0
0
Where,
P0 = Total Assets or Total Equity and Liabilities (Previous Year)
P1 = Total Assets or Total Equity and Liabilities (Current Year)
After calculating the growth, I have made an average of it by using the following
formula:
Formula:
. & =
Lastly, I have calculated the forecasted value of total assets and total equity and
liabilities for the time frame 2014-2018 by using the following formula:
Formula:
&
= {0 1 + . & }
Where,
P0 = Total Assets or Total Equity and Liabilities (Previous Year)
Forecasted Amount of Current & Non-Current Assets:
Firstly, I have calculated the percentage of current and non-current assets in total assets
by using the formula below:
Formula:
( )
( )
68
Then, I have made an average of the percentage of current or nor-current assets by using
the formula below:
Formula:
.
=
Lastly, I have forecasted the amount of current or non-current assets for the years 20142018 by using the formula below:
Formula:
= ( . %
)
Forecasted Amount of Different Sections of Liabilities & Equity:
Firstly, I have calculated the percentage of current and non-current liabilities and equity
in total equity and liabilities by using the formula below:
Formula:
=
( )
& ( )
Then, I have made an average of the percentage of current and non-current liabilities
and equity by using the formula below:
Formula:
.
=
69
Lastly, I have forecasted the amount of current and non-current liabilities and equity
for the years 2014-2018 by using the formula below:
Formula:
= ( &
. % )
Phase 02: As all the necessary calculations are done, I started to calculate the net working
capital by using the following formula:
Formula:
= { ( )
( )}
Phase 03: After computing the net working capital, I have calculated the change in net
working capital by following the formula below:
Formula:
= { ( )
( )}
Capital Spending:
Capital spending is calculated by using the following formula:
Formula:
= { ( )
( )}
70
Forecasted Data
Items
2014
2015
2016
2017
2018
487,532,310
528,591,594
573,108,833
621,375,251
71
Calculation
Value
Rf + (Rm Rf)
Ke = 0.08 or 8%
72
(1 + )
Phase 03: After computing each years cash flows, I have calculated the net present value of
the forecasted years (2014-2018) using the formula below:
Formula:
() =
73
Forecasted Data
Items
2014
2015
2016
2017
2018
1,649,911,683
3,300,186,488
4,225,089,251
5,366,262,476
6,711,516,847
(1+0.08)1 = 1.08
(1+0.08)2 = 1.17
(1+0.08)3 = 1.26
(1+0.08)4 = 1.36
(1+0.08)5 = 1.47
1,527,696,003
2,829,377,990
3,354,012,068
3,944,363,118
4,608,580,584
74
Intrinsic
Price
Per Share
Price
Market
Paice
Value
16,264,029,764
367,851,652
44.00 TK
January, 2014
51.81 TK
February, 2014
52.36 TK
March, 2014
50.48 TK
51.55 TK
75
TAKA
50.00
48.00
46.00
44.00
42.00
40.00
INTRINSIC PRICE
Beximco Pharma
MARKET PRICE
Intrinsic Price
Market Price
44.00
51.55
76
Increase in Exports:
Beximco Pharma has announced the initiation of export to Australia, with the launch of
Pantoprazole, a drug for treating gastrointestinal disorder. This is the first time a
pharmaceutical product from Bangladesh has been exported in Australia. This export
inauguration with increase their revenue even more, which eventually attracts the
investors. As a result, the market share price increased.
GMP Approvals from Regulatory Authorities:
Beximco Pharma has received good manufacturing practice (GMP) accreditation for its
oral solid inhaler and sterile eye drop facilities from the Taiwan Food and Drug
Administration (TFDA). Not only that, they also received GMP approval from the
Canadian regulatory authority, Health Canada, which makes them the first Bangladeshi
company to receive GMP accreditation from not only Health Canada but also from
TFDA. This prestigious and notable achievements opens a new marketing opportunity
for Beximco Pharmas products in the ASEAN market, including Taiwan and also in
Canada, which are some of the most advanced pharmaceutical markets in the world. So
expansion of markets for such honors encourages to investors to invest in Beximco
Pharmas shares.
Capacity Expansion Program:
In order to overcome the capacity bottlenecks and expand its product portfolio,
Beximco Pharma has recently undertaken a huge expansion program. The expansion
was financed through issuance of fully convertible preference shares worth BDT 4.1
billion, which worked as an influencing factor in their share being overpriced.
77
Chapter: 06
Recommendation
After sufficient research for making this report, I can clearly say that Beximco Pharma is the
leading manufacturer and exporter of finished formulations and active pharmaceutical
ingredients (APIs) of this industry. It is the largest private sector industrial conglomerate in
Bangladesh. They have significant strengths which makes them more enormous as a business
but like any other companies, the do possess certain weaknesses. As pharmaceuticals industry
is one of the most flourishing industry of our country, it creates significant opportunities for
the companies like Beximco Pharma but also creates massive threats in terms of product
differentiation and competition. As an intern, I have been involved into the daily activities of
Beximco Pharma for two (02) months and through my own personal observation, I have figured
out some certain aspects which goes in favor of them and some which goes against them.
Through a TOWS analysis, I will identify its strengths, weaknesses, opportunities and threats
and then by combining all these elements, I will provide an overall recommendation.
TOWS analysis is a process that requires management to think critically of its operations. By
identifying several action plans that could improve the company's position, TOWS analysis
allows management to choose those strategies that most effectively capitalize on the available
opportunities.
78
Internal Strengths
S-1: High Quality Products with Innovation &
Product Differentiation.
S-2: Innovative Marketing Strategies & Aggressive
Product Promotion.
S-3: Loyalty of Customers and Vendors
TOWS
Internal Weaknesses
W-1: Lack of Working Capital
W-2: Lack of Backward Linkage
W-3: Dependency in Exports Than Domestic
Market
W-4: Higher Per Unit Cost of Medicines
W-5: Higher Selling Price in Domestic Market.
S to O
O to W
S-1 to O-1: Beximco Pharma should serve the O-4 to W-4: Beximco Pharma should capitalize the
growing market of proper and effective medicines
O-2: Technological Advancement
low cost production facility in Bangladesh in order
through its innovative high quality products.
O-3: Rapid Growth of Pharmaceuticals Industry
S-2 to O-2: Beximco Pharma should use the to reduce its per unit cost of medicines.
O-4: Low Cost of Production in Bangladesh
technological advancement to promote its products
O-5: BAPI Eyes Expansion of Pharmaceutical more aggressively and innovatively.
Markets By Exporting into New Countries
External Threats
S to T
W to T
W-2 to T-3: By increasing the backward linkage,
Beximco Pharma should reduce its exposure to the
fluctuation of interest rates for raw material import,
which will also help the company to reduce its per
unit costs and selling price.
79
Chapter: 07
Conclusion
80
References
81
Chowdhury, N. (2010, December 15). Mgt Company Analysis Beximco Pharma. Retrieved
from Scribd: https://www.scribd.com/doc/45337850/Mgt-Company-AnalysisBeximco-Pharma
Chowdhury, P. M. (2010). Beximco Pharmaceuticals Ltd. Dhaka: BRAC EPL Stock
Brokerage Ltd.
Haider, S. (2015, February 13). A prescription for growth Prospects and challenges for the
Bangladesh pharmaceutical industry. Dhaka Tribune, p. 7.
Hashem. Industry Analysis of Pharmaceuticals Companies of Bangladesh. Dhaka.
Hoq, M. R., Ahsan, M., & Tabassum, T. A. (2013). A Study on SWOT Analysis of
Pharmaceutical Industry: The Bangladesh Context. Global Disclosure of Economics
and Business, 2.
Hossan, F., & Habib, M. (2010). Performance evaluation and ratio analysis of
Pharmaceutical Company in Bangladesh. University West.
(2014). Interim Financial Statements. Dhaka: Beximco Pharmaceuticals Ltd.
Kieso, W. K. (2009). Accounting Principals. New York.
Majumder, M. H., & Rahman, M. M. Financial Analysis of Selected Pharmaceutical
Companies in Bangladesh. European Journal of Business and Management.
Management & Marketing Practices & Problems of Pharmaceuticals Industry In
Bangladesh. Masters of Business Administration, BRAC University, Dhaka.
Orni, T. A. Financial Performance Analysis of Green Delta Insurance Company Limited.
Dhaka.
Rahman, D. (2014, October). Financial Performance of Pharmaceutical Industry in
Bangladesh with Special Reference to Square Pharmaceuticals Ltd. IOSR Journal of
Business and Management, 16(10), 38-46. Retrieved from
http://www.academia.edu/8878202/Financial_Performance_of_Pharmaceutical_Indus
try_in_Bangladesh_with_Special_Reference_to_Square_Pharmaceuticals_Ltd
Report on Beximco Pharmaceuticals Ltd. Dhaka.
Richard, M. (2012). Cost of Capital And Financial Analysis of Beximco Pharmaceuticals
LTD. Dhaka: BRAC University.
82
83
Beximco Pharma secures $51.6m from German bank. (2015, January 29). Retrieved from
The Daily Star: http://www.thedailystar.net/beximco-pharma-secures-51-6m-fromgerman-bank-62131
Beximco Pharmaceuticals Ltd. - Beximco Pharma commences export to Australia. (2015,
January 19). Retrieved from London Stock Exchange:
http://www.londonstockexchange.com/exchange/news/market-news/market-newsdetail/12219407.html
DSE Data Archive. Retrieved April 13, 2015, from Dhaka Stock Exchange Ltd.:
http://www.dsebd.org/dse_close_price_archive.php
Financial Ratio Tutorial. Retrieved March 29, 2015, from Investopedia:
http://www.investopedia.com/university/ratios/
News Results for Beximco Pharmaceuticals (BXP). Retrieved April 10, 2015, from Stock
Market Wire: http://www.stockmarketwire.com/company-news/BXP/BeximcoPharmaceuticals
Nigudkar, A. What is Equity Research? Retrieved April 7, 2015, from Finance Walk:
http://www.financewalk.com/2011/equity-research/
Operating Cash Flow - OCF. Retrieved April 8, 2015, from Investopedia:
http://www.investopedia.com/terms/o/operatingcashflow.asp
Ratio Analysis. Retrieved March 28, 2015, from Investopedia:
http://www.investopedia.com/terms/r/ratioanalysis.asp
Required Rate of Return of Beximco Pharmaceuticals Ltd. (n.d.). Retrieved April 2, 2015,
from Stock Bangladesh:
http://www.stockbangladesh.com/resources/individual_return/18453
Return on Common Stockholder's Equity. Retrieved March 26, 2015, from Accounting for
Management: http://www.accountingformanagement.org/return-on-commonstockholders-equity-ratio/
Solvency Ratio. Retrieved March 29, 2015, from Investopedia:
http://www.investopedia.com/terms/s/solvencyratio.asp
84
85
Appendix
2009
2010
2011
2012
2013
1,722,953,284.00
242,034,855.00
694,111,730.00
699,204,450.00
2,500,000,000.00
1,058,433,574.00
1,983,809,444.00
276,520,188.00
821,356,439.00
779,129,620.00
859,403,704.00
1,471,448,436.00
2,291,844,631.00
325,881,244.00
978,224,317.00
840,320,705.00
2,193,423,560.00
518,768,296.00
2,433,987,981.00
396,175,790.00
1,162,404,807.00
965,276,373.00
2,686,598,326.00
552,978,676.00
2,411,881,986.00
433,352,407.00
1,249,434,697.00
1,186,637,111.00
3,026,383,161.00
595,732,966.00
6,916,737,893.00
6,191,667,831.00
7,148,462,753.00
8,197,421,953.00
8,903,422,328.00
1,451,326,354.00
1,639,961,052.00
1,642,216,008.00
1,526,449,918.00
2,776,266,125.00
308,820,056.00
348,860,443.00
363,744,181.00
664,712,728.00
754,903,558.00
409,898,122.00
79,094,905.00
1,727,724.00
70,584,481.00
432,315,660.00
90,512,178.00
1,507,899.00
-
523,798,136.00
101,559,917.00
1,361,452.00
15,482,294.00
470,097,685.00
128,598,961.00
1,020,948.00
274,064,529.00
383,170,553.00
141,582,304.00
973,367.00
325,685,371.00
2,321,451,642.00
2,513,157,232.00
2,648,161,988.00
3,064,944,769.00
4,382,581,278.00
Current Ratio
2.98
2.46
2.70
2.67
2.03
Current Assets:
Inventories
Spares & Supplies
Accounts Receivable
Loans, Advances & Deposits
Short Term Investments
Cash & Cash Equivalents
Total Current Assets
Current Liabilities:
86
2009
2010
2011
2012
2013
821,356,439.00
978,224,317.00
1,162,404,807.00 1,249,434,697.00
Acid-Test Ratio
1.83
1.25
1.39
1.44
1.11
Items
2009
2010
2011
2012
2013
2,566,206,626.00
3,317,640,254.00
4,103,709,021.00
4,899,713,857.00
5,651,898,878.00
1,722,953,284.00
1,505,288,093.00
1,983,809,444.00
1,722,953,284.00
2,291,844,631.00
1,983,809,444.00
2,433,987,981.00
2,291,844,631.00
2,411,881,986.00
2,433,987,981.00
Average Inventory
1,614,120,688.50
1,853,381,364.00
2,137,827,037.50
2,362,916,306.00
2,422,934,983.50
Inventory Turnover
1.59
1.79
1.92
2.07
2.33
87
2009
2010
2011
2012
2013
624,740,307.00
1,051,648,808.00
1,198,525,342.00
1,319,389,328.00
1,406,104,399.00
4,868,254,915.00
6,490,847,353.00
7,890,241,843.00
9,289,115,284.00
10,490,699,094.00
13%
16%
15%
14%
13%
Profit Margin
2009
2010
2011
2012
2013
Net Sales
4,868,254,915.00
6,490,847,353.00
7,890,241,843.00
9,289,115,284.00
10,490,699,094.00
19,891,933,422.00
14,819,665,441.00
21,372,399,509.00
19,891,933,422.00
23,033,340,533.00
21,372,399,509.00
24,589,810,592.00
23,033,340,533.00
27,470,751,802.00
24,589,810,592.00
Average Assets
17,355,799,431.50
20,632,166,465.50
22,202,870,021.00
23,811,575,562.50
26,030,281,197.00
Asset Turnover
0.28
0.31
0.36
0.39
0.40
88
2009
2010
2011
2012
2013
Net Income
624,740,307.00
1,051,648,808.00
1,198,525,342.00
1,319,389,328.00
1,406,104,399.00
19,891,933,422.00
14,819,665,441.00
21,372,399,509.00
19,891,933,422.00
23,033,340,533.00
21,372,399,509.00
24,589,810,592.00
23,033,340,533.00
27,470,751,802.00
24,589,810,592.00
Average Assets
17,355,799,431.50
20,632,166,465.50
22,202,870,021.00
23,811,575,562.50
26,030,281,197.00
Return on Assets
4%
5%
5%
6%
5%
Item
2009
2010
2011
2012
2013
3.50
4.18
3.93
3.77
4.01
2009
2010
2011
2012
2013
10,885,707.00
10,450,202.00
15,974,086.00
10,885,707.00
17,128,128.00
15,974,086.00
18,408,162.00
17,128,128.00
19,775,552.00
18,408,162.00
10,667,954.50
13,429,896.50
16,551,107.00
17,768,145.00
19,091,857.00
58.56
78.31
72.41
74.26
73.65
89
2009
2010
2011
2012
2013
155.80
135.10
93.60
55.90
47.20
3.50
4.18
3.93
3.77
4.01
44.51
32.32
23.82
14.83
11.77
2009
2010
2011
2012
2013
1,451,326,354.00
1,924,933,065.00
1,639,961,052.00
1,902,150,733.00
1,642,216,008.00
1,890,074,651.00
1,526,449,918.00
1,469,621,611.00
2,776,266,125.00
1,151,400,702.00
Total Debt
3,376,259,419.00
3,542,111,785.00
3,532,290,659.00
2,996,071,529.00
3,927,666,827.00
10,885,706,614.00
15,974,086,451.00
17,128,128,177.00
18,408,161,859.00
19,775,552,465.00
0.31
0.22
0.21
0.16
0.20
Debts:
Short Term Borrowings
Long Term Borrowings
90
2009
2010
2011
2012
2013
1,451,326,354.00
1,924,933,065.00
1,639,961,052.00
1,902,150,733.00
1,642,216,008.00
1,890,074,651.00
1,526,449,918.00
1,469,621,611.00
2,776,266,125.00
1,151,400,702.00
3,376,259,419.00
3,542,111,785.00
3,532,290,659.00
2,996,071,529.00
3,927,666,827.00
Non-Current Assets
Current Assets
12,975,195,529.00
6,916,737,893.00
15,180,731,678.00
6,191,667,831.00
15,884,877,780.00
7,148,462,753.00
16,392,388,639.00
8,197,421,953.00
18,567,329,474.00
8,903,422,328.00
Total Assets
19,891,933,422.00
21,372,399,509.00
23,033,340,533.00
24,589,810,592.00
27,470,751,802.00
0.17
0.17
0.15
0.12
0.14
Debts:
Short Term Borrowings
Long Term Borrowings
Total Debt
Assets:
91
2009-10
2010-11
2011-12
2012-13
2013-14
Inventories
Trade Debtors
Advances, Deposits &
Prepayments
Short Term Loan
Margin Against BTB Letter of
Credit
Cash & Cash Equivalents
2,207,078,082.00
508,249,174.00
2,541,688,329.00
772,421,345.00
3,178,672,614.00
819,002,633.00
3,091,263,712.00
812,741,029.00
2,737,085,779.00
766,634,978.00
358,250,076.00
523,991,079.00
694,844,720.00
952,411,276.00
671,749,541.00
1,220,736,941.00
2,813,811,332.00
1,717,273,322.00
1,108,757,914.00
1,161,185,776.00
1,091,148,736.00
258,727,695.00
370,301,755.00
747,628,997.00
981,187,836.00
2,162,717,207.00
4,553,041,968.00
7,022,213,840.00
8,248,571,022.00
6,946,361,767.00
7,499,373,281.00
736,443,848.00
2,627,483,864.00
2,237,495,956.00
1,302,048,378.00
131,104,817.00
462,090,211.00
478,199,933.00
477,141,480.00
540,421,336.00
461,433,822.00
394,715,915.00
56,463,570.00
567,030,857.00
733,369,218.00
79,499,584.00
749,636,827.00
531,295,427.00
114,515,510.00
954,941,984.00
7,034,721.00
173,261,777.00
1,252,641,218.00
217,855,755.00
20,518,598.00
1,563,624,134.00
2,216,744,401.00
4,668,189,426.00
4,315,390,357.00
3,275,407,430.00
2,394,537,126.00
Current Ratio
2.05
1.50
1.91
2.12
3.13
Current Assets:
Current Liabilities:
Short Term Bank Loans
Long Term Loans-Current
Portion
Trade Creditors
Liabilities for Expenses
Liabilities for Other Finance
92
2009-10
2010-11
2011-12
2012-13
2013-14
258,727,695.00
370,301,755.00
747,628,997.00
981,187,836.00 2,162,717,207.00
1,220,736,941.00 2,813,811,332.00 1,717,273,322.00 1,108,757,914.00 1,161,185,776.00
508,249,174.00
772,421,345.00
819,002,633.00
812,741,029.00
766,634,978.00
2,216,744,401.00 4,668,189,426.00 4,315,390,357.00 3,275,407,430.00 2,394,537,126.00
0.90
0.85
0.76
0.89
1.71
2009-10
2010-11
2011-12
2012-13
2013-14
6,561,288,485.00
7,703,661,010.00
9,167,253,620.00
11,308,857,708.00
12,960,738,683.00
2,207,078,082.00
2,098,755,231.00
2,541,688,329.00
2,207,078,082.00
3,178,672,614.00
2,541,688,329.00
3,091,263,712.00
3,178,672,614.00
2,737,085,779.00
3,091,263,712.00
Average Inventory
2,152,916,656.50
2,374,383,205.50
2,860,180,471.50
3,134,968,163.00
2,914,174,745.50
Inventory Turnover
3.05
3.24
3.21
3.61
4.45
93
2009-10
2010-11
2011-12
2012-13
2013-14
Net Income
2,159,536,317.00
2,624,537,639.00
3,037,696,965.00
4,106,630,847.00
5,081,928,495.00
Net Sales
13,279,141,757.00
15,576,487,536.00
18,592,856,236.00
23,360,199,256.00
26,945,687,557.00
16%
17%
16%
18%
19%
Profit Margin
2009-10
2010-11
2011-12
2012-13
2013-14
Net Sales
13,279,141,757.00
15,576,487,536.00
18,592,856,236.00
23,360,199,256.00
26,945,687,557.00
15,029,500,278.00
13,251,242,856.00
19,444,409,654.00
15,029,500,278.00
24,562,168,660.00
19,444,409,654.00
27,551,671,215.00
24,562,168,660.00
31,046,074,531.00
27,551,671,215.00
Average Assets
14,140,371,567.00
17,236,954,966.00
22,003,289,157.00
26,056,919,937.50
29,298,872,873.00
Asset Turnover
0.94
0.90
0.85
0.90
0.92
94
2009-10
2010-11
2011-12
2012-13
2013-14
Net Income
2,159,536,317.00
2,624,537,639.00
3,037,696,965.00
4,106,630,847.00
5,081,928,495.00
15,029,500,278.00
13,251,242,856.00
19,444,409,654.00
15,029,500,278.00
24,562,168,660.00
19,444,409,654.00
27,551,671,215.00
24,562,168,660.00
31,046,074,531.00
27,551,671,215.00
Average Assets
14,140,371,567.00
17,236,954,966.00
22,003,289,157.00
26,056,919,937.50
29,298,872,873.00
Return on Assets
15%
15%
14%
16%
17%
Item
2009-10
2010-11
2011-12
2012-13
2013-14
106.43
9.56
7.82
8.74
10.26
2009-10
2010-11
2011-12
2012-13
2013-14
Net Income
2,159,536,317.00
2,624,537,639.00
3,037,696,965.00
4,106,630,847.00
5,081,928,495.00
11,721,331,851.00
10,044,685,134.00
13,817,708,990.00
11,721,331,851.00
19,251,480,428.00
13,817,708,990.00
22,586,225,346.00
19,251,480,428.00
26,739,581,929.00
22,586,225,346.00
21%
95
18%
20%
21%
2009-10 2010-11
2011-12
2012-13
2013-14
3581.00
3272.00
237.30
178.60
267.00
106.43
9.56
7.82
8.74
10.26
33.65
342.26
30.35
20.43
26.02
2009-10
2010-11
2011-12
2012-13
2013-14
736,443,848.00
1,032,633,110.00
2,627,483,864.00
655,645,734.00
2,237,495,956.00
508,778,060.00
1,302,048,378.00
1,106,327,183.00
131,104,817.00
1,183,627,923.00
Total Debt
1,769,076,958.00
3,283,129,598.00
2,746,274,016.00
2,408,375,561.00
1,314,732,740.00
11,721,331,851.00
13,817,708,990.00
19,251,480,428.00
22,586,225,346.00
26,739,581,929.00
0.15
0.24
0.14
0.11
0.05
Debts:
Short Term Bank Loans
Long Term Loans
96
2009-10
2010-11
2011-12
2012-13
2013-14
736,443,848.00
1,032,633,110.00
2,627,483,864.00
655,645,734.00
2,237,495,956.00
508,778,060.00
1,302,048,378.00
1,106,327,183.00
131,104,817.00
1,183,627,923.00
1,769,076,958.00
3,283,129,598.00
2,746,274,016.00
2,408,375,561.00
1,314,732,740.00
Non-Current Assets
Current Assets
10,643,410,336.00
4,553,041,968.00
12,422,195,814.00
7,022,213,840.00
16,313,597,638.00
8,248,571,022.00
20,605,309,448.00
6,946,361,767.00
23,546,701,250.00
7,499,373,281.00
Total Assets
15,196,452,304.00
19,444,409,654.00
24,562,168,660.00
27,551,671,215.00
31,046,074,531.00
0.12
0.17
0.11
0.09
0.04
Debts:
Short Term Bank Loans
Long Term Loans
Total Debt
Assets:
97
2009
2010
2011
2012
2013
1,075,310,581.00
343,870,341.00
80,677,337.00
143,248,172.00
1,295,855,164.00
478,364,475.00
110,721,962.00
178,384,225.00
1,585,100,179.00
640,195,291.00
97,564,211.00
141,265,972.00
1,986,744,883.00
843,231,267.00
148,951,592.00
331,292,974.00
2,657,779,255.00
1,142,685,421.00
167,985,236.00
240,262,887.00
Current Assets:
Inventories
Trade & Other Receivables
Advances, Deposits & Prepayments
Cash & Cash Equivalents
Total Current Assets
Current Liabilities:
Short Term Bank Loan
Trade Payables
Accruals
Provision & Other Liabilities
Unclaimed Dividend
Provision for Taxation
Long Term Loan-Current Position
Non-Convertible Bond-Current Position
Total Current Liabilities
Current Ratio
794,424,620.00
27,896,925.00
171,928,847.00
237,310,646.00
3,961,604.00
174,203,958.00
-
1,129,414,884.00
31,752,362.00
220,862,988.00
278,932,990.00
5,164,759.00
185,076,625.00
-
2,402,992,758.00
50,168,661.00
326,941,029.00
343,920,388.00
6,551,459.00
255,275,989.00
-
1,812,605,178.00
41,207,200.00
272,566,530.00
340,461,110.00
7,907,075.00
402,110,091.00
133,333,333.00
-
3,041,324,251.00
64,986,063.00
263,876,962.00
353,179,625.00
9,915,749.00
370,595,092.00
229,743,333.00
1,000,000,000.00
1.17
1.11
98
0.73
1.10
0.79
2009
2010
2011
2012
2013
143,248,172.00
178,384,225.00
141,265,972.00
331,292,974.00
240,262,887.00
343,870,341.00
478,364,475.00
640,195,291.00
843,231,267.00
1,142,685,421.00
Acid-Test Ratio
0.35
0.35
0.23
0.39
0.26
2009
2010
2011
2012
2013
1,820,496,777.00
2,405,361,976.00
3,099,355,955.00
3,619,613,644.00
4,316,755,028.00
1,075,310,581.00
959,414,590.00
1,303,637,035.00
1,075,310,581.00
1,585,100,179.00
1,303,637,035.00
1,986,744,883.00
1,585,100,179.00
2,657,779,255.00
1,986,744,883.00
Average Inventory
1,017,362,585.50
1,189,473,808.00
1,444,368,607.00
1,785,922,531.00
2,322,262,069.00
Inventory Turnover
1.79
2.02
2.15
2.03
1.86
99
2009
2010
2011
2012
2013
603,524,452.00
851,428,532.00
1,087,719,131.00
1,237,926,366.00
1,390,164,527.00
3,900,732,314.00
5,090,318,113.00
6,519,639,234.00
7,671,572,303.00
8,757,405,748.00
15%
17%
17%
16%
16%
Profit Margin
2009
2010
2011
2012
2013
Net Sales
3,900,732,314.00
5,090,318,113.00
6,519,639,234.00
7,671,572,303.00
8,757,405,748.00
3,851,369,286.00
3,162,232,934.00
5,132,284,238.00
3,851,369,286.00
7,691,601,900.00
5,132,284,238.00
9,753,077,971.00
7,691,601,900.00
12,782,413,204.00
9,753,077,971.00
Average Assets
3,506,801,110.00
4,491,826,762.00
6,411,943,069.00
8,722,339,935.50
11,267,745,587.50
Asset Turnover
1.11
1.13
1.02
0.88
0.78
100
2009
2010
2011
2012
2013
Net Income
603,524,452.00
851,428,532.00
1,087,719,131.00
1,237,926,366.00
1,390,164,527.00
3,851,369,286.00
3,162,232,934.00
5,132,284,238.00
3,851,369,286.00
7,691,601,900.00
5,132,284,238.00
9,753,077,971.00
7,691,601,900.00
12,782,413,204.00
9,753,077,971.00
Average Assets
3,506,801,110.00
4,491,826,762.00
6,411,943,069.00
8,722,339,935.50
11,267,745,587.50
Return on Assets
17%
19%
17%
14%
12%
Item
2009
2010
2011
2012
2013
333.90
37.74
38.51
35.34
39.38
2009
2010
2011
2012
2013
Net Income
603,524,452.00
851,428,532.00
1,087,719,131.00
1,237,926,366.00
1,390,164,527.00
2,207,279,956.00
1,662,073,357.00
2,971,470,944.00
2,207,279,956.00
3,958,608,036.00
2,971,470,944.00
5,070,479,748.00
3,958,608,036.00
6,295,114,611.00
5,070,479,748.00
1,934,676,656.50
2,589,375,450.00
3,465,039,490.00
4,514,543,892.00
5,682,797,179.50
31%
33%
31%
27%
24%
101
2009
2010
2011
2012
2013
1205.15
1294.27
1205.00
739.50
722.00
333.90
37.74
38.51
35.34
39.38
3.61
34.29
31.29
20.93
18.33
2009
2010
2011
2012
2013
794,424,620.00
-
1,129,414,884.00
-
2,402,992,758.00
-
1,812,605,178.00
225,000,000.00
3,041,324,251.00
477,306,667.00
Total Debt
794,424,620.00
1,129,414,884.00
2,402,992,758.00
2,037,605,178.00
3,518,630,918.00
1,969,336,362.00
2,693,186,179.00
3,668,730,036.00
4,705,914,472.00
5,888,140,573.00
0.40
0.42
0.65
0.43
0.60
Debts:
Short Term Bank Loan
Long Term Loan
102
2009
2010
2011
2012
2013
794,424,620.00
-
1,129,414,884.00
-
2,402,992,758.00
-
1,812,605,178.00
225,000,000.00
3,041,324,251.00
477,306,667.00
794,424,620.00
1,129,414,884.00
2,402,992,758.00
2,037,605,178.00
3,518,630,918.00
2,208,262,855.00
1,643,106,431.00
3,050,606,199.00
2,063,325,826.00
5,227,476,247.00
2,464,125,653.00
6,442,857,255.00
3,310,220,716.00
8,573,700,405.00
4,208,712,799.00
Total Assets
3,851,369,286.00
5,113,932,025.00
7,691,601,900.00
9,753,077,971.00
12,782,413,204.00
0.21
0.22
0.31
0.21
0.28
Debts:
Short Term Bank Loan
Long Term Loan
Total Debt
Assets:
Non-Current Assets
Current Assets
103
2015 (F)
2016 (F)
2017 (F)
2018 (F)
12,734,505,434
15,458,228,971
18,764,516,938
22,777,971,303
27,649,844,567
5,506,730,545
6,684,539,268
8,114,263,966
9,849,785,762
11,956,510,162
Gross Profit
7,227,774,890
8,773,689,703
10,650,252,971
12,928,185,541
15,693,334,405
2,531,354,448
3,072,773,958
3,729,995,143
4,527,786,280
5,496,213,214
4,696,420,441
5,700,915,744
6,920,257,828
8,400,399,261
10,197,121,191
525,960,430
638,455,636
775,011,912
940,775,569
1,141,993,635
762,828,444
925,986,236
1,124,041,081
1,364,456,947
1,656,294,232
4,459,552,428
5,413,385,144
6,571,228,659
7,976,717,883
9,682,820,594
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
104
105,511,718
128,079,124
155,473,366
188,726,834
229,092,730
4,354,040,710
5,285,306,020
6,415,755,293
7,787,991,049
9,453,727,864
603,369,274
732,421,093
889,075,200
1,079,235,317
1,310,067,889
Current Tax
243,725,636
295,854,967
359,133,996
435,947,479
529,190,238
Deferred Tax
359,643,638
436,566,126
529,941,204
643,287,838
780,877,651
3,750,671,435
4,552,884,927
5,526,680,093
6,708,755,732
8,143,659,975
268,324
325,714
395,380
479,946
582,599
3,750,939,759
4,553,210,641
5,527,075,473
6,709,235,677
8,144,242,574
462,400,324
501,343,027
543,565,430
589,343,745
638,977,445
105
Workings
Sales Growth
0.33
0.22
0.18
0.13
0.53
0.54
0.23
0.24
0.05
0.05
0.07
0.06
0.01
0.01
0.05
0.03
0.02
0.03
0.00
0.00013
0.21
% of COGS
0.53
0.51
AVG % of COGS
0.52
0.52
% of Operating Expenses
0.27
0.24
0.23
0.24
% of Other Income
0.04
0.07
0.04
0.05
% of Financial Cost
0.06
0.10
0.07
0.07
0.01
0.01
0.01
0.01
% of Current Tax
0.00
0.01
0.03
0.02
% of Deferred Tax
0.05
0.04
0.03
0.03
106
0.00
0.00
0.00
0.00003
Listed Shares
% of Depreciation
0.00088
AVG % of Depreciation
0.02588
0.02774
0.02
107
0.03177
0.02806
Non-Current Assets:
2014 (F)
2015 (F)
2016 (F)
2017 (F)
2018 (F)
Current Assets:
9,562,217,373.79
Inventories
Total Assets
108
Retained Earnings
Non-Current Liabilities:
5,121,647,580.82
5,552,985,522.03
6,020,650,136.75
6,527,700,806.23
7,077,454,568.50
3,773,325,565.34
4,091,109,726.62
4,435,657,222.10
4,809,222,022.08
5,214,247,923.04
110
Workings
Growth in Total Assets
0.07
0.08
0.65
0.71
0.35
0.29
0.55
0.75
0.68
0.31
0.33
0.32
0.74
0.75
0.72
0.13
0.12
0.12
0.16
0.07
0.12
0.70
0.34
0.13
0.67
0.32
0.69
0.68
0.12
0.08
% of Current Assets
0.07
0.14
0.17
0.12
0.12
0.11
0.13
0.07
0.08
0.08
5,788,891,808
6,276,424,118
6,805,015,712
7,378,124,545
7,999,499,796
1,268,050,758
487,532,310
528,591,594
573,108,833
621,375,251
Capital Spending
1,654,752,956
1,703,075,283
1,846,505,883
2,002,016,006
2,170,622,973
111